Customs classification is the process of categorizing goods that are imported or exported across international borders. This classification helps determine the applicable tariffs, taxes, and regulations for each item. Each product is assigned a specific code, known as a Harmonized System (HS) code, which is used globally to identify and track trade items. Accurate customs classification is essential for compliance with trade laws and to avoid penalties. It also aids in the collection of trade statistics and helps governments monitor the flow of goods. Proper classification ensures that businesses can efficiently navigate international trade and logistics.